Explain why we are willing to pay more for a diamond than a glass of water even though water is essential for survival and diamonds are an…
- Explain why we are willing to pay more for a diamond than a glass of water even though water is essential for survival and diamonds are an unnecessary luxury.
- You and your entrepreneurial buddy have a concession stand on the beach. It is a hot, sunny, crowded day, and you are selling a few $5 collapsible umbrella as sun shades. The sky suddenly darken, rain begins to pour, and your buddy quickly switches the umbrella price sign to $10. Will you sell more or fewer umbrella? Explain your thinking, including your analysis of the customers decision.
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